Ladies and gentlemen, good day and welcome to Q2 FY 2025 earni ngs conference call of Symphony Limited, hosted by Equirus Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Gori from Equirus Securities. Thank you, and over to you.
Yeah. Good afternoon, everyone. On behalf of Equirus Securities, I welcome everyone to Symphony's Q2 FY 2025 earnings conference call. We have the pleasure of having with us the senior management team of Symphony, led by Chairman and Managing Director, Mr. Achal Bakeri; Managing Director, Corporate Affairs, Mr. Nrupesh Shah; and Group CEO and Executive Director, Mr. Amit Kumar. I will now hand over the floor to the management for their opening remarks along with the presentation, and then we'll start with the Q&A. Over to you, Achal, sir.
Okay. Thank you very much, Manoj. Good afternoon, everybody, and happy Dhanteras to all of you. The customary safe harbor clause applies to the entire proceedings of this call. I will hand over the floor to my colleague, Nrupesh Shah, who will make a short presentation, post which we'll all take questions. Thank you.
Hello. Good afternoon to everybody, and happy Dhanteras. Customary safe harbor statement is applicable. We'll take you through financials, overview of the operations, as well as the management outlook. Starting with standalone financials. For the quarter, top line stands at INR 259 crore, up by 32%, while PAT is up by 36% at INR 67 crore. This is after providing additional income tax of about INR 2 crore on account of amendment, due to latest budget, whereby capital gain on treasury has been increased, so that has been accounted for. At EBITDA percentage level, it is up from 26.8%- 27.8%, mainly on account of operating efficiency and better economies of scale.
Coming to first half, that is September 2024, six months, revenue from operations is up by 72% at INR 632 crore, while PAT is up by 112% at INR 136 crore. Our highest-ever standalone H1 revenue was INR 423 crore about two years before. That was in September 2022. So vis-à-vis that, this is higher by almost 47%, while in September 2019, standalone PAT was the highest, which was at INR 83 crore, now which stands at INR 136 crore. At the same time, in terms of efficacy of capital employed as well as return on net worth. So on trailing 12 months, it is INR -3 crore. Here we consider monthly opening and closing capital employed, and based on that, it is INR -3 crore versus INR 55 crore previous year, and hence, statistically on a standalone basis, it is infinite ROCE.
After a long time, we are back to return on net worth in excess of 30%, that is 31%, versus previous year of 21%. After paying about INR 100 crore by way of buyback of shares as well as interim dividend, treasury as on 30th September stands at INR 685 crore, up from INR 589 YoY. About console financials for the quarter, top line stands at INR 315 crore, up by 15%, while PAT is up by 61% at INR 56 crore. In terms of the PAT margin percentage, it is 17.7% up by 500 BPS, and EBITDA is also up by almost 500 BPS.
At a console level, EBITDA margin movement is even better than standalone, mainly on account of better realization at subsidiaries level, even though at a profitability level, still they are subpar and hence at a console level, GP margin has gone up by 3.13 percentage, which was almost at par with previous year on a standalone basis. In terms of other items, it is mainly on account of better economies of scale. About the major highlights of console financials in H1, revenue from operations, INR 846 crore, up by 47%. Previous highest ever console H1 revenue was in September 2022, which was INR 603 crore. So vis-a-vis that, it is up by more than 40 percentage, while EBITDA stands at INR 175 crore versus INR 70 crore previous year. That is almost 150 percentage up.
In terms of the EBITDA margin percentage, it is up by 840 BPS and stands at 20.6 percentage. At a PAT level, it is INR 144 crore. In financial year 2023-2024, year as a whole console PAT was INR 148 crore. So six months PAT is now almost in line with entire financial year of 2023-2024. In continuation of standalone financial efficacy of ROCE and RONW, here it is 93 percentage PBIT on core capital employed in the business versus 37 percentage, and return on that which stands at 33 percentage versus 15 percentage. However, here capital employed unlike standalone, because there it is in overseas subsidiaries working capital-oriented business. But still, overall capital employed is down from INR 301 crore- INR 286 crore. Coming to subsidiaries financials. This is subsidiary company-wise financials for September 2024 versus September 2023.
IMPCO is leading the pack with a top line of INR 122 crore and year-over-year in six months, 14% growth and PAT at INR 14 crore versus INR 8 crore. GSK, China is continuously witnessing improved performance and top line up from INR 23 crore- INR 41 crore with a PAT of INR 5 crore. Symphony Brazil, this is a standalone subsidiary performance, but this is mainly a trading company and for our Brazil operations. We also do have a decent profit in Symphony India, and there it stands at INR 19 crore versus INR 7 crore top line wise. Climate Technologies is continuously witnessing the headwind and top line wise it is INR 74 crore down from INR 91 crore, while PAT is INR -70 in line with last year.
Despite top line is lower, on account of reduced cost of doing the business, still we have contained the EBITDA, but still we are not out of woods. Subsidiaries put together for six months, the turnover is up by 12% up from INR 229 crore- INR 256 crore and at EBITDA level, INR 23 crore versus INR 7 crore, while PAT, which includes profit earned by Symphony India on exports to subsidiaries, is INR 7 crore versus INR -10 crore. On the right-hand side, it is for the quarter. Coming to performance highlights. As we saw, it has been on a standalone basis as well as console basis, highest ever September quarter revenue as well as EBITDA.
On a standalone basis, this is highest ever September quarter PAT led by strong brand and product portfolio, launch of new 17 models of air coolers have been well received, but their billing and delivery will start from December quarter. As there was a robust summer season, even inventory at a trade level was below normal. That has also helped the perform. In September quarter, there has been also decent secondary sales. As informed earlier, we have forayed into water heater and to start with selected geography and there has been very promising response from the trade partners. We are expecting very positive performance in water heaters down the line.
We have to also inform that there has been a major amount of overdue from a large distributor of our modern trade, and their payment schedule for September quarter that is falling due from July to September, they haven't matched it, and that they have not honored with this large distributor. We were having longstanding relationship of more than 10 years, since 2013, and so far until summer of 2023, there was impeccable payment track record. However, considering the delay, we have already initiated the legal action, and we will go all out for the recovery, but we need to report this. Today, board of directors have announced second interim dividend of INR 2 per share, and with this total shareholder payout for first six months will be INR 110 crore versus console pay-out of INR 144 crore. That is 77% of the console profit is payout.
As Symphony is known, in terms of the capital efficacy and our focus, despite growth and performance, has been always how we can be wise enough in terms of the capital employment. In terms of the total fixed assets on a standalone basis, it stands at INR 76 crore, while in terms of the current assets, it is INR 198 crore, which includes a receivable of INR 73 crore. Unfortunately, this could have been even better. However, as you can see, the difference between domestic receivables, mainly it is on account of that delayed payment as conveyed earlier. Mainly that difference is that problematic receivables. Total liabilities stand INR 445 crore, mainly that consist of advances from the customers. This translates into negative capital employed of INR 171 crore as on September 24, versus negative capital employed of INR 70 crore.
If we consider the trailing 12 months capital employed, it is INR -3 crore. Of course, that would have been far better had it been not this issue of delayed realization of domestic receivables. Trailing 12 months PBIT is INR 252 crore on a negative capital employed on a standalone basis. Symphony clearly believes top line is a vanity, profit is a sanity, but cash flow and cash profit is really a purity and reality. All the strategies and actions really are towards that and on a console basis, as it can be seen, despite major investments in acquisition of Climate Technologies, all in all, the capital employed on a console basis is INR 114 crore as on 30th September 2024, while on trailing 12 months, the capital employed is INR 286 crore.
By and large, our total capital deployed in the core business is close to INR 300 crore, and despite major growth in top line and profitability, our business model remains constant, and it has paid off very well. We also wish to report that in our gross block that is in fixed assets, certain real estate is reflected, and it is in two parts. Part one we have identified as a surplus real estate. One is our Thol property, which is on the outskirt of Ahmedabad, where earlier we used to have an assembling facility. Out of 60,000 sq m of land, almost 45,000 sq m of land is a surplus. Historical cost was INR 17 lakhs, and current market value is INR 61 crore, and we have decided to transfer from fixed assets to investment in property.
Similarly, there is another prime land parcel off Sindhu Bhavan Road and measuring 1,254 sq m and historical cost is INR 5.7 crore, and its market value is about INR 30 crore. In addition to one flat having a small value. Both put together INR 31 crore. It has been decided to divest and monetize, and hence it is being reclassified from fixed assets to assets held for sale. To an extent of INR 6 crore, that is at the historical cost, gross block or fixed assets will come down, and to that extent, investment as well as current assets will go up. Also just for information purpose, Symphony corporate house which is again at a prime location of Sindhu Bhavan Road, 1,943 sq m. Historical cost is INR 25 crore, and market value is INR 84 crore.
At Thol, still some warehousing and spare parts related operations are happening at measuring about 12,000 sq m . Historical cost of INR 6 lakhs and market value of about INR 20 crore. All in all, INR 25 crore cost of real estate, which will continue to remain as fixed assets as they are being used for operations, but market value of INR 104 crore. Coming to overseas subsidiary-wise performance highlight, IMPCO Mexico, six months as a whole, it has done very well. Top line up by 14% on very high base of previous year and PAT up by 72%. However, during this quarter, YoY, there is a decline in top line because in summer of 2023, there it was a prolonged summer, while in current year, summer of 2024 itself was very strong and there was very decent sale in June 2024 quarter.
About GSK, China, as reported, six months as a whole, the turnover stands at INR 25 crore versus INR 11 crore. More importantly, they have started repaying the loan as reported earlier. In current year, six months itself, the loan to Symphony repayment is about INR 11 crore out of INR 63 crore including interest, and hence now balance outstanding is INR 52 crore. There is a clear visibility of additional repayment of loan, and that loan was granted earlier by Symphony, basically to take care of its old accumulated losses as well as working capital and domestic business growth. About Symphony Brazil, the revenue grew from INR 6 crore- INR 18 crore during the quarter. Climate Technologies Australia, we don't have any good news. Demand headwind persists. However, business transformation is progressing as planned.
Coming to outlook, just few days before, United Nations of organization came out with the report, the UNEP Emissions Gap Report. In the middle, it is highlighting the major points of that report, which says that world temperature is on track to rise by 3.1 degrees. On further right-hand side, there are several other reports from reputed media, all of them saying that world temperature is on track to rise in excess of 3 degrees. That previous slide itself is actually for a medium term and long term.
A major outlook and sort of guidance because we very much are well-geared to solve for climate change and we have well-diversified geographically, we have well-diversified product portfolio, and our innovation engine continues and on account of our spread in overseas subsidiaries as well as in India in terms of the R&D facility as well as sales and marketing, they also very well serve as complementary strengths. Thank you. We can take question and answer.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Achal Lohare from Nomura Institutional Equity. Please go ahead.
Yeah, good afternoon, sir. Thank you for the opportunity.
May I request you to use your handset please?
First question first, with respect to—
Achal, may I request you to use your handset please?
How has been the industry growth in general actually?
Achal, you are being requested to use your handset please, for better clarity.
Sorry. Can you hear me, sir?
Better.
Better.
Yeah. Sorry. Sir, thank you for the opportunity. Just two questions first. If you could talk about the industry for this season, how the industry has done. I know there is no proper dataset, but just a broad sense, have we gained market share? Have we just maintained our market share? And B, if you could also talk about what is our mix in terms of the metro, urban, semi-urban.
Are you talking about the quarter, market share for the quarter?
For the quarter or first half or whatever you feel appropriate.
Well, the second quarter, as you know, in our business at the retail level, there is not much sales that happens after June. So there is really nothing to report on that front.
Sure.
The first quarter, which is the April to June quarter, of course, we did very well and so did the entire industry because of the scorching summer. All summer products, including air conditioners, fans. What not did very well. During that quarter, our market share has improved, or more or less remained the same. That's as far as the market share is concerned. What is the second question?
The mix, sir, in terms of the metro, urban, semi-urban.
I think that is something which we don't really talk about for competitive reasons.
Right. Have you seen any differential growth in terms of these markets or the growth was pretty much similar across the markets? Let's say for trailing 12 months basis.
No, I would say it was pretty much the same across all geographies.
Okay. The second question I had, sir, while obviously YoY for the parent business, parent entity, the growth is 32%, but if I were to just look at pre-COVID, because COVID has caused a lot of disruption in terms of the numbers. If I were to look at from a five-year perspective, the growth is just 6%. I am just trying to understand, in terms of the growth, is this industry really growing only in mid-single digit? Is it growing in kind of. Is there no volume growth or it is entirely volume growth and no price growth? If you could give some clarity on that.
Yeah, sure. You are right. The growth, if you look at the last five years, the growth on a CAGR basis isn't anything to write home about. That's primarily because our business is tremendously linked to how the summer temperatures are. We had a good summer in 2024. The previous summers were not all that good. When I say not all that good, I mean temperatures weren't high enough or consistently high enough. Because of which the sales did not grow as expected. All in all, it's all really linked to the summer temperature and nothing to do with the category per se.
Got it. In terms of competitive intensity, if you could give any comment, is it intensifying further? Because we see a lot of FMCG companies trying to really go for 70 air coolers.
Yeah, sure. There are those companies, but there used to be, in fact, even more companies in the unorganized sector. Now, these are sort of semi-unorganized sector companies, which seem to be sort of getting attention. But that's a very long list. There have always been hundreds or thousands of players in this category. They were not known of. Now maybe they are getting a little visibility, but by and large, as far as the organized sector is concerned, it remains concentrated amongst a handful of companies.
Understood. Any guidance in terms of how do we see from a three to five year perspective, the India growth and the subsidiaries growing and also on the margins, if you could?
We believe that we are poised to grow consistently. We believe that the worst is behind us and we should be clocking a very respectable double digit CAGR going forward at the India level. As far as the international subsidiaries are concerned, three of the four subsidiaries are doing well, as explained in the presentation by Nrupesh Bhai . It's only the Australian subsidiary which is yet to turn around, but that's a matter of time. You may obviously not be familiar with the history of the other subsidiaries, but they were also, I would say, languishing once upon a time. They've all been turned around. They're all doing well in their respective countries. I'm sure that the same will hold true for Australia as well. It's just a matter of time. It's taken longer than we had anticipated for a variety of reasons.
But we believe that there, too, it's like a hockey stick curve. And once we sort of touch bottom, which we believe we have, going forward, the performance will only be significantly better.
Got it. Thank you so much, sir. I'll follow back in the queue for further questions. Thank you.
Pleasure.
Thank you. We'll take our next question from the line of Shraddha Kapadia from Share India. Please go ahead.
Hello.
We cannot hear you, Shraddha.
Hello.
Please use your handset more.
Hello, am I audible?
A little better. Please go ahead.
Yeah. Congratulations on the good set of numbers, especially in terms of the margin improvement, which has been observed. The basic question would be, sir, what are the plans that you already highlighted for the CT Australia, but what exactly are the plans to kind of revive the subsidiary? The margin improvement is seen, but what would be the major plan so as to get back the revenue growth?
So there, the revenue has taken a knock because of external factors. Ever since COVID, the Australian economy has been severely affected. Many of our products, especially our air cooling and central heating products, are sold to builders, and many builders have gone bust over there. That is one big reason why our sales have suffered. However, to overcome that, we are introducing a slew of other products, including air conditioners, portable air conditioners, electric heaters, panel heaters, gas heaters, fireplaces. Products which don't necessarily have to go into the builder segment, which are more consumer, more of a B2C kind of a business. All those have been very well received. But the introduction has sort of happened very recently. So for them to gain momentum, for them to generate revenue, will take a little while.
But since we have a venerable brand over there, we have the team, the distribution, it's just a matter of time that the new products begin to gain momentum and deliver results.
Okay, sir. Thank you so much. Just one more question. So we have launched—
Hello, Shraddha. You're not audible again. Please use handset.
Yes. Is this better? Hello.
Yeah. Please go ahead.
Yeah. So one more question with regards to the new product launches. So we have launched approximately 17 new air cooler models. So what exactly are the strategies in place to ensure that these products are able to capture the market share effectively? And if you could just give a bit of brief with regards to the product features or the differentiators features from the existing air coolers which are already in place.
It will be very difficult to explain over a call, but to give you one example, we are introducing a product which is very silent. In fact, we have even named it Silenzo. It will be the most silent product air cooler available in the market. So that is one sort of example. And other would be, we have also introduced, or are introducing a range of commercial coolers, which will sort of eat into the unorganized sector market. So, we have different strategies at play, and which will collectively give us the kind of results that we expect.
Okay, thank you very much for the opportunity. Bye-bye.
Shraddha, are you through with your question?
Yes.
Thank you.
Thank you.
We have our next question from the line of Gaurav Shah from Harshad Gandhi Securities. Please go ahead.
Yeah. Thanks for the opportunity. Just a quick question. Sir, do we have any product that cater to the data center thing? Any industrial application, including application for the data center?
No, not directly. Although our subsidiary in China is currently working on something which can be used in data centers, but it is still at the development stage. But as we speak, it is not available.
Okay. So we are in development stage, right?
Yes.
If you talk about if everything goes well, then in next two years, can we enter the segment or something like that?
I guess so, fingers crossed.
Okay. Thanks a lot. That is it from my side.
Thank you. Next question is from the line of Manish Shah, an individual investor. Please go ahead.
Thank you for the good set of numbers, sir. I wanted to ask a question about the receivables. What is the exact amount, and if you can name the distributor?
We will not be able to name the distributor, but we can certainly share what we have already reported. On account of ongoing legal issue, we cannot name the distributor. About the amount, as I explained during the presentation, in a slide, there is a difference between the receivable of domestic receivable current year versus previous year. The difference between two almost is the amount of the overdue recovery. That is INR 46 crore versus INR 2 crore. About INR 44 crore, by and large.
Sir, any security deposit or anything which we have?
I do not think at this stage we can share any of those details. What we can say that we already initiated the necessary legal actions, and we have some more further weapons. In addition to that, we will go all out for the recovery, because as matter is partly sub judice, it is not advisable to share any further information on that.
Sir, are you reasonably confident that we will get the money?
Our guess is as good as yours at this point of time. As I explained earlier, this was the party having a turnover in excess of INR 2,000 crore at a group level. They were our distributor for more than 12 years, and until last summer, they were having impeccable track record in terms of the repayment. This has come as a major surprise to us also.
They are not a listed player in the stock market, right?
They are not listed.
Sir, one question about the inventory. Sir, vis-a-vis last year, what is the inventory at present in the trade channel and the company?
No, at a company level, it is a normal inventory as it should be at this point of time. So it is a normal inventory, either on a standalone basis or at a console level.
No, in the trade channel, sir.
No, in our trade, actually it is below normal at the end of the summer. That's how it is also reflected, good off take during off-season, that is in September quarter. That's how on a standalone basis, our YoY top-line growth is 33%.
Thank you, sir. Thank you so much for answering all the questions.
Thank you.
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. We'll take our next question from the line of Rahul Gajare from Haitong Securities. Please go ahead.
Good evening, gentlemen, and thanks for the opportunity. Sir, I have got a couple of questions. I will start with the standalone performance. Good profitability that we have seen in the standalone business. I just want to know, the other expenses have increased and especially when the advertisement was low. I just want to know what is it that has led to the spike in the other expense in the standalone performance.
Girish, if you can briefly explain some major areas.
Sure. Other expenses include the other variable expenses which is linked to the turnover also. You can see the turnover has increased for the period of six months and three months. Warranty expenses, freight outward, all that expenses are linked to the turnover. Mainly due to the increase of the turnover, other expenses are increased. However, if you need—
Yeah, just a moment. In our case, as we do have OEM business model, OEM supply the readymade products, but whatever expenses are incurred, fixed as well as variable expenses, both fall into various rates. As Girish explained, freight and forwarding, warranty, warehousing related costs, which to an extent are linked with the turnover, are also part and parcel of that.
Yes.
Okay, thanks. Sir, with respect to the delay in payment that you talked about in your opening remarks from one large modern retail. Can you talk about the quantum of payment that is there and whether this is a regional retailer or a pan-India retailer? Some color on that will be helpful.
No, what was your first part of the question?
The quantum of the delay that you have seen from the large retailer, that you talked about in your opening remark, the quantum.
No, it is a large distributor, and about quantum of delay, as such repayment was to start from June quarter. However, there was a payment plan which was agreed upon, and that was to start from July 24. Whatever was agreed payment plan starting July 24, as it has not met with, as a better corporate governance practice, we have deemed it appropriate to share it. Even though all necessary actions have been taken and measures are there, including we have initiated Section 138 proceedings against them, and there will be few other legal proceedings also.
Sir, in this case, can you specify what is the value of the outstanding that was from this retailer or distributor?
No, as we explained, the difference between the domestic receivables as on 30th September 2024, versus 30th September 2023, is about INR 44 crore. Amount is close to that.
Okay, fair enough. And this is a regional player, or this is a pan-India distributor of yours?
I think at this point of time, we cannot divulge that.
Okay.
That could jeopardize legality as well as recovery.
Sir, the other question that I had was on your subsidiary performance. I just want to know, with respect to Climate Technologies, could you break up how Australian business is doing, how the U.S. business is doing in terms of growth profitability? Because we are obviously seeing it in totality.
You seem to have joined the conference now because we have already covered that.
Yes, I actually was out of the call and then back in the call. I probably missed when you discussed.
We have already been through that. It will be a disservice to the other participants if we were to repeat all that again.
Sure. The last question that I had was on the China business. You talked about improvement in your visibility, et cetera. I want to understand what is driving it. Is there any specific product category that is driving an improvement in the China business, or is it the outsourcing that you are doing from China? What is really helping your China business? That is the last question.
Combination of both. It is a combination of both. Outsourcing from China to other parts of the world, domestic business, all of it. All of it has shown an improvement.
Sure. Thank you very much, and happy Dhanteras to your entire team.
Thank you.
Thank you.
We'll take a follow-up question from the line of Achal Lohare from Nomura Institutional Equity. Please go ahead.
Sir, thank you for the opportunity once again. Just a clarification. So INR 44 crore is outstanding. This was for 2023 supplies. 2024, have you supplied anything?
2024.
Okay. This is 2024 supplying.
For summer. 2024 summer.
Summer season. Correct. And usually we supply against the advances, right? Is this exceptionally we have supplied or how? Just a clarification.
We supply against advances to the general trade. We do give credit to customers in modern retail, e-commerce, regional chain stores are the ones where we give credit. Bulk of our business is to general trade, where we do not give any credit.
He being a distributor, obviously will fall into general trade, right?
No, he is a distributor that supplies to e-com.
Okay. Understood. Okay, sir. Thank you so much for the clarification.
You are welcome.
Thank you. Before we take the next question, we would like to remind participants to press star and one to ask a question. We will take our next question from the line of Vinay Nadkarni from Hathway Investments. Please go ahead.
Yeah. Am I audible?
Yes.
Just one question. This INR 42 crores, what you said, any provision on that account as of now or not yet?
As of now, this is the net-net amount, as we can wait.
Okay. Secondly, can you just give us a breakup of your total sales and how much of it is general trade and how much is organized trade?
We cannot give that again for competitive reasons. We never have.
I understand. Thirdly, as far as the growth of business is concerned, is it dependent only on summer or are there other areas also you look at? Of course, product expansion is one thing, but other than that, in terms of regional geographies. How much of your business growth will come from summer alone, and summer being a good summer? And how much will it come from your efforts to improve the
So as far as a company, what we do, we invest in new product development. We spend a lot of time and energy on innovation. We continuously improve the breadth and penetration of our distribution. We invest in brand building. We invest in after-sale service and keep on improving on all of these fronts. But at the end of the day, when the customer buys only in the summer. This product is an impulse buy. It is not a planned purchase because it is largely a portable product. The day the mercury goes up to 42, 44, whatever, they go out to the market, buy, and it is a plug-and-play product, so it gives you instant relief. The entire industry, it is not just Symphony, the entire air cooler category is sold primarily in the summer. Products are sold only in the summer.
Depending on what happens in the summer or how high the temperatures are and how good the sales in the summer is, it determines how the entire industry performs, including all players of the industry.
Okay.
In addition to that, recently we have forayed into some adjacent category. That is tabletop models, and they are selling around the year. Of course, it is a small amount, but they are doing extremely well. Plus, in terms of the distribution channel, we have also diversified. In addition to that, as you may be aware, we are also into large space ventilated air cooling, that is centralized ducted air cooling. In addition to that, as there is a geographical diversification, especially in southern hemisphere, that is Brazil and Australia, our summer is their winter and their winter is our summer. IMPCO Mexico as well as Climate Technologies are also into non-air cooler products. So to that extent, it dilutes in terms of seasonality.
Yeah. Thanks for the answer. The reason why I was asking you is as compared to air cooler and air conditioner is used all year around. Of course, summer will make a difference, but other than that, air cooler industry is more summer dependent. That is the only reason why I am asking.
Absolutely. You are absolutely right. Because air conditioners are installed, and people generally buy air conditioners when they are moving into a new home or when their old air conditioner conks out. Even if it is winter, they will replace it with a new air conditioner. So it is more of a planned purchase. Whereas air coolers, for whatever reason, are an impulse buy, and again, only a summer product. For example, as we speak, we are sitting in Ahmedabad. It is 38 plus degrees outside. It is really hot. It is probably hotter than most parts of the world are in peak summer. Despite that, there is no sales at the retail level of air coolers. So for whatever reason, this is the nature of the product.
Yeah. Thanks a lot. Thank you for the answer. Take care.
Yeah.
Thank you. Ladies and gentlemen, we will take that as last question for today. I would now like to hand the conference over to management for closing comments. Over to you, sir.
All right. Once again, thank you very much to all of you for participating in this conference call. We really appreciate the time that you have spent and the questions that you have given, and we hope we have been able to answer all of them to your satisfaction. Wishing all of you a happy Diwali in advance and Eid Mubarak, and look forward to seeing all of you again three months from now. Thank you. Bye-bye.
Thank you, members of the management team. On behalf of Equirus Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.